All Forum Posts by: Michell Chase

It isn't a large amount but my concern is that if I remove the tenant in July I have no deposit in the event that there are damages to the unit.  We already signed the purchase agreement several months ago...it has been on hold while they mitigated a pest control issue that has taken 2 months.

So a bit of a weird situation.  I am about to close on a multi family property that currently just has 1 tenant in place.  I just received the information on the tenant from the listing agent/property manager.  In the lease it states that a security deposit of 1 months rent was collected.  But I was also sent a document stating that a county housing assistance program was guaranteeing the tenants security deposit (which was accepted by the current landlord) but not for the full lease term because the tenant is no longer receiving assistance and that the guarantee would only be until 2/2025.  The letter also stated that the current landlord should have begun collecting payments toward to the security deposit upon receipt of the letter they provided me, which they did not.  Couple of questions on this one, as I have not closed on the property yet, but it is scheduled for next week.  1.  As the lease the current landlord signed with the tenant stated that they collected one months rent as a security deposit can my attorney require the owner to provide those funds?  They stated they collected them and as per the letter from the housing assistance program they should have started collecting those funds from the tenant back in October. (and on the flip side the tenant can surely say they paid it as per the lease and even though I didn't receive it on purchase he has the lease stating he paid).  2.  If I cannot recoup the funds from the current owner can I do a full inspection of that unit during my pre closing inspection to bill the assistance program for any visible damages before 2/2025 when the guarantee expires?  3. Is there legal recourse for me to now collect the required security deposit from the tenant even though he is in place (his lease does not expire until 7/2025), can i do a lease amendment requiring payment?

Thanks...

I am working with a hard lender on a purchase/reno and they require a builders risk policy even though 1 unit of the 3/4 will have a tenant.  Can anyone recommend a company that offers a builders risk policy to cover the construction period but then will also allow a cancellation and refund after work is finished to convert into a standard landlord policy.  The insurance agency I work with is having trouble finding a company that understands that type of policy and also offers it. 

Morbid question here...but at a certain age we thing "What happens to my assets when I die?". ... as I own my RE portfolio via my single member LLC is there a process that I can setup wherein the event of my death that LLC passes to my designated individual along with the assets owned by my LLC? Yep I am an overthinker but also don't want to put my tenants in limbo in the event that something should happen.

THanks

I am currently working on building my RE portfolio. As a beginner, before learning about all different types of lenders, I purchased my first investment property under a conventional investment mortgage in my own name. Since then I have opened my LLC and am beginning to buy other investment properties under that LLC. As I am not a spring chicken with my age..there are always concerns about "What happens if I die?"...therefore the underlying base of my question. Would it make sense to refinance my conventional into a DSCR with my LLC that way I can create a plan for my single member LLC upon my death so that my RE assets are also passed along...

Thanks

I registered my LLC in Wyoming and was not told anything to that nature..but my investment property is in NY so I also have to register my WY LLC as a foreign entity LLC in NY as I will be generating income in that state...

Quote from @Diyan Yap:

1st, I don't like quick claim deeds.
Always use the title company, a little expensive but worth it and less guessing with liens.
Where in upstate NY exactly, do you have contractors who are willing to go there? 

Yes I have a contractor looking at it tomorrow. It’s a quitclaim deed because they bought it from city tax sale.  I would do title search and it would be a purchase contingency. They will make some good money on selling it at a low price as they purchased for almost nothing and are just looking to dump it for some cash.   

Quote from @Diyan Yap:

1st, I don't like quick claim deeds.
Always use the title company, a little expensive but worth it and less guessing with liens.
Where in upstate NY exactly, do you have contractors who are willing to go there? 

Yes I have a contractor looking at it tomorrow.  Quitclaim is only option on this as they bought it from town tax sale.   I will definitely do a title search.  I am looking at it from the perspective of what could be done with the additional land as well. 

We have a unique property we are looking at in upstate NY.  It is listed for low 40’s has been on the market over a year, went to auction and didn’t even sell I think we could get it for less.  The duplex itself is a disaster it is a 3/1 and 3/1.5 vandals got in when it was vacant and cut pipes and electrical basically would need to be gutted and probably over 100k in renovations.  The unique part is that the duplex is in the city and is on a huge corner lot that is 1/3 of an acre so could potentially hold another structure and the sale also comes with the neighboring lot that is smaller but is also large enough to build a structure.  I see a lot of potential with the vacant land as well as rehab on the structure.   Just curious of thoughts on that.  Also the seller got the title from the city on a tax sale and can only offer a quitclaim deed so is offering seller financing.  We already have hard money lined up to cover the mortgage and rehab.  Not sure about that process would I have to accept his financing being it’s a quitclaim deed? 

Thanks 

@Henry Lazerow. I know this post is old, but could you shoot me your insurance agent if they cover NY?